To answer the original question: no, Wallace and Wilson were never slated for demolition. The DoR closed them about 10 years ago because they didn't need the space. Then, when they decided that Knapp and Storms were structurally deficient, the DoR did schedule a demolition timeline for Wallace and Wilson, pending an examination of those halls. However, they were found to be in good shape, even though the space wasn't needed at the time.
Wallace was reopened for Fall 2006 as all super-singles. Since then, there has been a massive spike in the number of people contracting with the DoR. Wallace is now full, and the bottom six floors of Wilson have been reopened for Fall 2009. They anticipate reopening the seventh floor for Spring 2010, and 8-10 for Fall 2010 based on space demands. After that, they'll have to start turning super-singles back into doubles.